Comments on: Investing with Purpose: Building Wealth for the Future – Chapter 6: Smart Selling: Knowing When to Exit a Long-Term Investment https://incometelligence.com/2025/01/26/investing-with-purpose-building-wealth-for-the-future-chapter-6-smart-selling-knowing-when-to-exit-a-long-term-investment/ incometelligence.com Wed, 29 Jan 2025 22:56:26 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Pou Sunny https://incometelligence.com/2025/01/26/investing-with-purpose-building-wealth-for-the-future-chapter-6-smart-selling-knowing-when-to-exit-a-long-term-investment/#comment-18 Wed, 29 Jan 2025 22:56:26 +0000 https://incometelligence.com/?p=1597#comment-18 In reply to Sokchan.

The wash sale rule is an IRS rule that says if you sell an investment at a loss, you can’t claim that loss as a tax deduction (tax-loss harvesting) if you buy the same or a very similar investment back within 30 days. In that case, the loss, originally intended for tax-loss harvesting, is disallowed for that year and is instead added to the cost basis of the new investment. For non-U.S. residents in countries where tax deductions from investment losses don’t apply, the wash sale rule has no real impact on their financial decisions. Your broker applies the same rule to all their clients for convenience, I believe.

]]> By: Sokchan https://incometelligence.com/2025/01/26/investing-with-purpose-building-wealth-for-the-future-chapter-6-smart-selling-knowing-when-to-exit-a-long-term-investment/#comment-17 Mon, 27 Jan 2025 03:45:00 +0000 https://incometelligence.com/?p=1597#comment-17 “Tax Loss harvesting” is for US resident so why IRS applies it to non US resident like me. they add the loss to cost basis of the stock bought with 30 days. Sorry teacher because I don’t really understand

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